Abu Dhabi’s real estate sector continued to build on its strong momentum in the first half of 2025, with both the sales and rental markets seeing steady growth.
According to dubizzle’s H1 2025 Abu Dhabi Property Sales and Rental Market Report, robust investor sentiment, major infrastructure projects, and increasing adoption of digital platforms have underpinned sustained demand across all property segments.
The report highlights a marked increase in transaction values in the first six months of the year, indicating deepening confidence in the UAE capital’s real estate landscape.
Contributing factors include innovations in digital transparency led by platforms such as Madhmoun, and ongoing strategic projects like Etihad Rail and the upcoming Disneyland development on Yas Island, which have spurred both property value appreciation and rental demand in nearby communities.
The rental market mirrored this growth, supported by new project deliveries, rising occupancy rates, and a resurgence in tourism. In parallel, the off-plan market recorded high activity levels, fuelled by new launches and diverse buyer interest across affordable, mid-tier, and luxury segments.
Read: Revealed: Top performing areas in Abu Dhabi real estate in H1 2025
Ready sales: Broad-based price increases across all tiers
Data from dubizzle’s H1 2025 report shows consistent price increases across affordable, mid-tier, and luxury properties:
- Affordable apartments rose by 6.44 percent, while affordable villa prices increased by up to 3.38 percent.
- Mid-tier apartments climbed 4.91 percent and mid-tier villas by 4.84 percent.
- Luxury apartments posted an 8.95 percent increase, with luxury villas rising 4.92 percent.
Al Reef villas led the affordable segment with the highest price jump, delivering an ROI of 6.18 percent, followed by Al Shamkha, Khalifa City, Zayed City, and Hydra Village.
Mid-tier demand focused on Al Raha Gardens, Al Reem Island, and Al Samha, while luxury buyers gravitated toward waterfront locations like Yas Island, Saadiyat Island, Al Jubail Island, and Al Matar.
Off-plan sales: Surge in launches, sustained buyer activity
The off-plan segment showed continued strength, supported by a growing pipeline of projects:
Affordable segment
- Top-performing areas: Al Shamkha and Zayed City.
- Popular projects:
- Al Reeman 1 (AED 804,000 average),
- Granada at Bloom Living (AED 1.34 million),
- Nawayef Park Views, Al Hudayriyat Island (AED 3.56 million).
- Affordable villa prices ranged from AED 1.01 million to AED 4.7 million, led by Al Reeman 2 and Al Naseem on Al Hudayriat Island.
Mid-tier segment
- Al Reem Island stood out with Vista 3 (AED 1.39 million), Reem Hills (AED 1.66 million), and Renad Tower (AED 1.58 million).
- Emerging communities: Masdar City, Ghantoot, Shakhbout City.
- Villas in Reem Hills and Royal Park (Masdar City) drew strong interest.
Luxury segment
- High-demand areas: Yas Island, Saadiyat Island, Al Maryah Island, Al Raha Beach, and Al Jurf.
- Top projects:
- Yas Bay by Miraal (AED 2.11 million) and Gardenia Bay by Aldar (AED 1.96 million).
- Saadiyat Cultural District (AED 4.66M average), Brabus Island (AED 3.13 million).
- St. Regis Residences and W Residences, Al Maryah Island.
- Yas Riva villas led luxury villa demand, alongside projects on Saadiyat Island, Al Jubail Island, and Al Jurf.
Investor returns: Competitive ROIs across segments
- Affordable apartments:
- Al Reef topped with 9.46 percent ROI, followed by Al Ghadeer (8.42 percent).
- Affordable villas:
- Highest ROI in Hydra Village (8.42 percent) and Al Reef (6.18 percent).
- Mid-tier apartments:
- Al Reem Island (7.33 percent) and Masdar City (7.20 percent).
- Mid-tier villas:
- Best performers: Al Raha Gardens (6.23 percent) and Al Samha (5.34 percent).
- Luxury apartments:
- Al Maryah Island offered the highest ROI at 8.48 percent, with Yas Island (6.77 percent) and Al Raha Beach (6.40 percent) following.
- Luxury villas:
- Saadiyat Island led at 5.56 percent, followed by Yas Island (5.40 percent).
Rental market: Steady gains across segments
Long-term rentals
- Luxury apartments in Al Raha Beach, Corniche, and Yas Island averaged between AED 112,000 –AED 143,000.
- Luxury villas in Yas Island, Al Bateen, and Saadiyat Island ranged from AED 236,000 to AED 590,000.
- Mid-tier apartment rents rose notably:
- Electra Street: AED 66,000 (+12.33 percent)
- Al Reem Island: AED 114,000 (+9.24 percent)
- Al Khalidiyah: AED 91,000 (+9.22 percent)
- Mid-tier villa rents reached:
- Shakhbout City: AED 168,000
- Al Samha: AED 144,000
- Al Raha Gardens: AED 184,000
- Affordable apartments in Khalifa City, Al Shamkha, and Al Nahyan ranged from AED 45,000 – AED 62,000.
- Affordable villas in Khalifa City, Al Reef, and Al Shamkha were priced between AED 135,000 – AED199,000.
Short-term rentals
- Mid-tier options:
- Reem Island recorded an average monthly rent of AED 11,410.
- The rent in Masdar City averaged AED 8,350.
- Luxury short-term rentals:
- Yas Island: AED 12,560 per month
- Al Raha Beach: AED 13,050 (+21.93 percent)
- Saadiyat Island remained the priciest at AED 16,740 per month.
As Abu Dhabi’s property market continues to mature, driven by smart city initiatives, tourism growth, and landmark developments, the outlook for both investors and end-users remains positive for the remainder of 2025.
